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Consumers of all ages aregoing over-the-topResults of the 2011 Accenture Video-Over-Internet
Consumer Usage Survey
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communications companiesto have
a better understanding of changing
consumer behaviors and interests, so they
can direct their investments properly.
To give companies deeper insights into
their target customers as they launch
or extend broadband TV and video
capabilities, Accenture has conducted
a global survey of more than 6,500
consumers around the world across
major geographies: the United States,
United Kingdom, Australia, Brazil,
Germany, Italy and Spain.
The results give companies a look
not only at current trends, but also
at where those trends are leading, in
terms of both video viewing habits and
where revenue growth is most likely
to occur. Although traditional linear
TV offerings still dominate consumerviewing habits, that dominance is
already in question.
Case in point: two-thirds to three-
fourths of consumers are already
using other devices including desktop
computers, laptops, DVD players, mobile
devices and even broadband-enabled TVs
to watch video.
Although considerable challenges lie
ahead for broadcasters, telcos and
other companies looking to position
themselves optimally within the
Internet video ecosystem, its clear
that consumers are readyand in some
instances may even be ahead of the
companiesin terms of their vision
for how, when and where they watch
and interact with video content in the
digital age.
New research from
Accenture: consumer
trends in the Internet
video industryThe amazing growth of broadband is
shaking up how people around the world
watch TV and, in general, how they
consume all types of video content acrossall types of devices. Its also shaking up
business models and entire industries,
as Web-enabled platforms drive a rapid
uptake of digital video services.
In this environment of overwhelming
market potential, its more important
than ever for all the players in this
market spacebroadcasters, content
providers, network operators and other
The era of Internet video is here, and
its influencing the viewing behaviors
of more than just younger generations.
According to new research from
Accenturethe 2011 Video-Over-
Internet Consumer Usage Surveymore
than three-quarters of consumers of all
ages in major geographies around the
world are now watching video content
over the Internet via a PC or TValso
called over-the-top TV (see Figure 1).
Of course, the fact that 85 percent of
people ages 18 to 24 are Internet video
consumers is hardly surprising. But even
among consumers over the age of 65,
two-thirds of our survey respondents are
joining the Internet video movement.
And 82 percent of those in one of
the most important demographics to
advertisers (ages 35 to 44) are now
accessing and interacting with video
over desktops, laptops, Internet-
connected TVs and mobile devices.
These are numbers that cannot be
ignored. Consumption of video over the
Internet is now more than a millennial-
generation phenomenon; it is an
activity that crosses all ages. Video over
the Internet is on its way to becoming
the new mass media.
Figure 1. Proportions of consumers (total and by geography) who watch video over the Internet
0%
20%
40%
60%
80%
100%
Total United States Brazil United Kingdom Germany Italy Spain Australia
77%80%
89%
75%
65%
79%
86%
72%
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The need for over-the-top players to
adopt new capabilities and business
models may increase the demand
for specialty firms and partners with
both the technology and experience
to bring compelling offerings to
market at an accelerated pace. This
demand is heightened by a constantly
evolving landscape of services and
devices which, our research finds, are
increasingly compelling to consumers
all over the world.
Video on everything?
The growth of video
watching across devicesWatching TV certainly isnt what it
used to be. Once confined to a single
kind of device, and an experience
that involved an undifferentiatedaudience leaning back to enjoy
content pushed to them, the video
experience has become much more of
a lean-forward activity that involves
choosing, interacting and sharing.
This is a trend thats been growing
in the marketplace, and our research
confirms it. The consumers participating
in the Accenture Video-Over-Internet
Usage Survey are certainly still
watching traditional, passive, linear TV,but theyre also accessing and viewing
content over an amazing range of
other devices and using other means to
interact with content and people during
the viewing experience.
For example, seventy-five percent of
consumers globally have used a desktop
computer to view video content; 72
percent have watched video on a laptop;
and 63 percent have watched video on a
mobile device or Internet-connected TV.Tablet computers such as iPadswhich
are new in the marketplacelag the
pack, with only 21 percent of consumers
saying theyve used them for video
watching (see Figure 2).
What does it mean that devices
(Internet-connected TVs) so recently
introduced have already reached a
level of acceptance equal to the use
of mobile devices to watch video? The
finding may reflect the form factor
challenge when it comes to mobile
video viewing: with broad access
to video across devices with larger
screens, mobile video viewing will
rarely be the first choice among many
consumers. Providers will need to focus
even more on video content created
specifically for the small screens of
mobile phones.
Looking at geographic differences,
several areas of the world are out in
front. Brazil leads the way in desktop
video watching (82 percent) and Italy
in mobile video watching (76 percent).
Consumers in the United States lag
behind in several respects when it
comes to video over the Internet:
as compared to other geographies
surveyed, the fewest percentages watch
video on laptops (64 percent) and
mobile devices (47 percent). Brazils
consumers again lead the pack when it
comes to using Internet-connected TVs
(78 percent) while Australia shows the
lowest level of usage (55 percent).
However, its the pervasiveness of
Internet video-watching across age
groups and genders that is truly an
outstanding development. Nearly equal
percentages of the men (79 percent) and
women (75 percent) surveyed are online
video consumers. Numbers across the
most profitable age demographics are
also extremely strong: 85 percent of 18
to 24 year-olds; 84 percent of 25 to 34
year-olds; and 82 percent of 35 to 44
year-olds (see Figure 3).
Consumers arestill watchingtraditional TV,but theyrealso viewingcontent overan amazingrange of otherdevices and
interactingwith contentand peopleduring theviewingexperience.
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Figure 2. Proportions of consumers (total and by geography) who watch videoby device
0%
20%
40%
60%
80%
100%
TV via traditionalsources
Desktopcomputer
Laptopcomputer
DVD/Blu-ray TV via broadbandor Internet
Mobilephone/device
iPad/tablet
Total
United States
Brazil
United Kingdom
Germany
Italy
Spain
Australia
92%
75%72% 71%
63% 63%
21%
Figure 3. Proportions of consumers who watch video over the Internetby age and gender
0%
20%
40%
60%
80%
100%
Total Male Female 18-24 25-34 35-44 45-54 55-64 65+
77%79%
75%
85% 84%82%
76%
71%
64%
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viewing on mobile devices. The viewing
of video over a laptop has dramatically
increased among 18 to 24 year-olds
(54 percent) and 25 to 34 year-olds
(46 percent), but has also increased by
about one-third for consumers between
the ages of 35 to 54 (see Figure 5).
Trending upward,
across all age groupsEqually compelling are the trend lines.
Our global survey respondents indicated
that they were increasing their use
of non-traditional devices to watch
video. Viewing increased in the past
year on laptops (35 percent), desktops
(28 percent), Internet-enabled TVs
(26 percent) and mobile devices (23
percent) (see Figure 4).
And these trends are showing up in age
groups beyond the expected numbers
of the millennial generation. Indeed,
for most devices, growth numbers
are nearly identical for the 25-34
year-old category as for the 18-24
year-old category. Thirty-one percent
of consumers in both age groups, for
example, have increased their video
viewing on desktops; 34 percent in
both groups have increased video
Figure 4. Proportions of consumers (total and by geography) whose video watching increased on each device in the past year
0%
10%
20%
30%
40%
50%
Laptop computer Desktopcomputer
TV via broadbandor Internet
TV via traditionalsources
Mobilephone/device
DVD/Blu-ray iPad/tablet
Total
United States
Brazil
United Kingdom
GermanyItaly
Spain
Australia
35%
28%26%
23% 23%
19%
7%
Figure 5. Proportion whose video viewing has increased on each device in the past yearby gender and age
0%
10%
20%
30%
40%
50%
60%
Laptop computer Desktop computer Mobile phone/device
35%
28%
23%
Total
Male
Female
18-24
25-34
35-44
45-54
55-64
65+
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0%
10%
20%
30%
40%
50%
Catch-up TV to pauseand watch at leisure
Personal video recorder(ability to store andwatch whenever)
Surfing the Web onyour TV
Ability to watch contenton other devices
Having interactive/socialnetworking functionalities
Total
United States
Brazil
United Kingdom
Germany
Italy
Spain
Australia
40%
24%
14%12%
11%
What do consumers want?What features and functions of Internet/
broadband TV are most appealing
to consumers? The largest share of
respondents40 percentpointed
to functionality with which they are
already familiar: catch-up TV that
enables viewers to watch content they
may have missed, recorded up to aweek or so in the past. This finding is
additional support for the contention
that consumers are ahead of the market:
they want unlimited content at their
convenience and actually see less value
in the more traditional, but constrained,
model of the personal video recorder
(PVR) (see Figure 6).
Looking at other service features of
video over the Internet, the survey
results point to the fact that consumersare now looking to experience the same
kinds of freedom, unlimited choices
and compelling user experience with
their video and TV viewing that they
have grown accustomed to on their
computers. However, they do not
necessarily want to surf the Web and
see relatively little value in using the TV
as a device for widgets.
Dealing with a more
fragmented viewing
experienceThe lean forward experience enabled
by the digital world is also changing the
very nature of TV and video viewing.
There is no longer any delivery channel
or device that receives the uninterruptedattention of viewers. The viewing
experience is now made up of an ever-
changing mix of different devices for
different reasons, all at the same time.
The economics of free-to-air,
advertising-funded broadcasting were
based on the economy of attention:
the ability to capture and maintain
peoples attention during commercials,
at scale. These traditional economics
are now in question according tosurvey results, as eighty-one percent
of consumers multi-task with other
devices while watching TV, and
presumably, this behavior is intensified
during 30-second advertising spots.
Almost half of consumers (48 percent)
use a laptop computer while watching;
41 percent use a mobile device; and 23
percent use a desktop computer. The
analog world isnt going away, either:
about one-third of consumers regularly
read a book or newspaper while
watching TV.
Again, nearly identical percentages of
18 to 24 year-olds (94 percent) and 25
to 34 year-olds (92 percent) multitask.
About three-fourths of those ages 45
to 64 also are engaged in multiplemedia experiences as they watch TV.
This fragmented viewing experience
might at first appear to present
challenges to groups such as traditional
advertisers looking for a share of
dedicated consumer eyeballs. On
the other hand, companies able to
leverage this multi-device, multichannel
experience to reinforce messages
or content across devices have an
opportunity to gain even more viewerawareness and loyalty. Today, very few
broadcasters and content providers have
truly compelling multi-device services
that can leverage these consumer
behaviors. Yet consumers are clearly
indicating that they have the mental
bandwidth to cope with additional
information, services and entertainment.
Figure 6. Most important Video-Over-Internet service feature: total and by geography
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Tablets: supporting a more
interactive experienceAs noted previously, iPads and other
tablet computers are just now entering
the arena and thus are not yet a
significant factor in Internet video
by consumers. However, consumers
are already aware of how the tablet
might change their viewing experience.
Although the greatest percentage of
consumers (54 percent) are interested
in using their tablets for fairly standard
video-on-demand and catch-up
functions, another 44 percent cited
interest in the ability to interact with
an on-air program to receive additional
content related to whats being viewed.
Another 39 percent were interested
in access to interactive content during
a show (e.g., placing a bet on a gameor voting).
These findings again point to a trend
that is likely to dramatically alter how
video content is provided to consumers
and how other media and devices
will be used to reinforce the primary
experience and device being used.
Consumers are indicating that good
content is as important as ever, but the
key driver for adopting a new service
is to package that content with an eye
toward a more personalized experience.
They want to watch video on their
termsnot by appointment.
On the horizon are functions related to
social networking. These are featuresthat providers will have to increasingly
incorporate into their offerings.
Although the numbers of interested
consumers appear low at this time,
these lean forward capabilities represent
a growing trend in the industry. Interest
in social networking as a service feature
provided though Video-Over-Internet
was slightly higher among 18 to 24 year
olds (16 percent) than for those ages 25
to 64 (10 to 11 percent).
The greater issue here is control: once
consumers experience control over
what content they watch and when, its
only a small step to additional matters
of control such as on what device and
with whom they watch and interact.
Compelling functions
for PC and laptop
video viewingThe Accenture Video-Over-Internet
survey also asked consumers about
specific features and functions they
would be interested in across different
devices. More than half pointed to oneof the key capabilities of Internet TV:
the ability to store and record content
locally, and then view it on multiple
devices at their convenience. In this case,
the ability to record content on the PC
and then watch it later either on that
computer or on a TV was compelling
functionality to majorities of consumers
across most geographies (see Figure 7).
Employing a catch-up feature on a
computer was of interest to 43 percentof consumers, and video on demand
was of interest to 40 percent. Forty-one
percent were interested in the more
expansive set of TV channels that can
be made available to them through
Internet-enabled TV.
0%
10%
20%
30%
40%
50%
60%
70%
Ability to use PCto record TVcontent and watchlater on PC or TV
Catch-up TV Video ondemand (i.e.,movie or TVshow library)
TV channelsavailable on TV
New TVchannels notavailable on TV
Apps such asweather,news, stocks,horoscope
Recos andalerts forprograms ofinterest
Social networkfeatures
Total
United States
Brazil
United Kingdom
Germany
Italy
Spain
Australia
52%
43%41% 40%
36%
20%18%
14%
Figure 7. Preferred services from content providers via Internet on a computer/laptoptotal and by geography
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The ultimate stakeholder, however, is
the consumer. Understanding consumer
Video-Over-Internet preferences is
critical to success, regardless of where
a company seeks to position itself in
the overall ecosystem.
Video delivered over broadband
connectivity is no longer a phenomenon
confined to younger generations. As the2011 Accenture Video-Over-Internet
Consumer Usage Survey shows, growing
percentages of consumers across all age
groups are watching video on Internet-
enabled devices.
Consumers are indicating strongly that
they are ready for a true multi-device
experienceone that goes beyond
simply replicating traditional TV on
another device to creating a new
experience where content is important,quality is critical and personalization of
the service is a must. Over-the-top TV
can succeedif companies understand
and embrace new consumer behaviors.
Managing the effectsIs Internet TV beginning to surpass other
important sources of revenue such as
premium subscription services? These
effects are only beginning to be seen
and are unclear as of yet. Although
about two-thirds of consumers (fairly
consistently across geographies) have
not changed their premium channelsubscriptions because of Internet TV,
results indicate an initial net loss of
premium channel subscriptions of about
eight percent. Consumers are possibly
not fully convinced that over-the-top
video is a full substitute for premium
pay TV, but as consumers test new,
over-the-top services, a progressive
downgrading of subscriptions may occur.
Similarly, Internet video has had only
a modest effect on video-on-demand(VoD) purchases. About three-fourths of
respondents said their VoD purchasing
habits have remained about the same;
eight percent or so claim to have
reduced VoD purchases, but about an
equal amount say they are now actually
purchasing more.
Conclusion: Listening
to the consumerDifferent types of companies are
experimenting with Video-Over-Internet
services, and savvy players are learning
both from past mistakes and current
stumbles. Original IPTV offerings, for
example, did not meet expectations
because they tried to imprison
consumers in proprietary, walled
gardens. Mobile video has struggled
with overcoming the restrictions of
smaller screens and devices.
In general, openness is becoming an
important marketplace characteristic,
and also a key to success. Since the
birth of commercial television, TV
broadcasting has been a business
dominated by a fairly limited number
of stakeholders. Today, many players
are jockeying for position. New
stakeholderstelcos, Web search
engines, portals, device and software
giants, and othersare looking to
play a key role in how the industry
evolves. This is now a wide-openand
increasingly globalplaying field.
0%
10%
20%
30%
40%
50%
60%
70%
Time required tobuffer/download/play video
Advertising duringthe program
Poor video quality(if not HD)
Poor navigation/search/EPS
Increased broadband/high-speed data costsfrom downloading video
None
52%50%
25%23%
11%
Total
Male
Female
18-24
25-34
35-44
45-54
55-64
65+
58%
Figure 9. Frustrations about viewing Internet video on computer, TV and other devicesby gender and age*
*Data in the chart is reflective of the 4,566 survey respondents who are currently viewing Internet video on their computer, laptop, mobile phone, tablet, or other device.
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Copyright 2011 Accenture
All rights reserved.
Accenture, its logo, and
High Performance Deliveredare trademarks of Accenture.
ContactFor more information about the
Accenture 2011 Video-Over-Internet
Consumer Usage Survey, please contact:
Janice Burg-Levi
Director of Global Industry Marketing,
Communications & High Tech, Accenture
janice.burg-levi@accenture.com
About the authorsMarco Vernocchi
Global Managing Director, Media &
Entertainment, Accenture
marco.vernocchi@accenture.com
Francesco Venturini
Global Broadcasting Lead, Accenture
francesco.venturini@accenture.com
Dipan Patel
North America Video Lead, Accenture
dipan.d.patel@accenture.com
About AccentureAccenture is a global management
consulting, technology services and
outsourcing company, with more than215,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive
research on the worlds most successful
companies, Accenture collaborates
with clients to help them become
high-performance businesses and
governments. The company generated
net revenues of US$21.6 billion for
the fiscal year ended Aug. 31, 2010. Itshome page is www.accenture.com.